Wednesday August 12, 2015
Shake Shak now carries a market capitalization near that of Wendy's.
But Wendy's has 71x more locations and 86x the revenue!
A finance textbook would state that the value of a firm is the present value of future cash flows. Clearly that is NOT how Shake Shack is being valued. Shack is valued via positive social mood which has put a high premium on expected growth.
Learn more at the socionomics website.
Professor Elam 
Leave a comment